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ESPN to lay off 300 Employees

ESPNESPN, the worldwide leader in sports will lay off 300 employees or 4% of their workforce.  the company is said to be looking to control costs  while it faces competition in an ever-growing pay-TV market.

ESPN employs about 8000 people and is owned by the Walt Disney Company.

The layouts will affect departments across the company including distribution advertising, technology, administration and content.

ESPN is facing the same issues as others in the TV advertising market. As viewers are scaling back to smaller, cheaper bundles of channels. ESPN is typically not a base subscription type of channel for most viewers.

ESPN had experienced some subscriber losses and its downward revision of profit guidance for the cable business led to a $50 billion stock rout of media companies across the board.

ESPN employees that are being let go will do so with a minimum of 60 days notice, and severance packages based on the number of years of service. ESPN will also provide assistance in finding future employment.

“I realize this process will be difficult—for everyone—but we believe the steps we are taking will ultimately create important competitive advantages for our business over the long term,”  ESPN President John Skipper said. “The demand for sports remains undiminished, though the landscape we operate in has never been more complex.”

The layoffs may also signal an end to extravagant contracts once enjoyed by ESPN from all the major sports organizations.

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